Tokyo’s stock market surged on Friday, with the Nikkei leading most Asian equities higher on a broadly positive day. The advance was driven mainly by gains in technology stocks and optimism over possible US interest rate cuts.
The rally across global markets this year has been fueled by companies investing heavily in artificial intelligence. Traders are eager to participate, pushing valuations of major firms to record highs. Nvidia, a US chip giant, recently topped $4 trillion, highlighting investor enthusiasm.
This week saw added momentum after South Korean semiconductor leaders Samsung and SK hynix struck a preliminary deal with OpenAI to supply chips for its Stargate project. On Friday, Japanese conglomerate Hitachi announced a strategic partnership with OpenAI in AI and energy. Following the news, Hitachi shares jumped over nine percent. Other Japanese tech companies also rose: Renesas gained nine percent, Sony rose 2.8 percent, Advantest climbed more than three percent, and SoftBank added over three percent.
The tech-led surge helped push Tokyo’s Nikkei sharply higher. Other regional markets also benefited on a broadly positive day, with gains recorded in Sydney, Wellington, Taipei, Jakarta, and Manila. Meanwhile, Hong Kong fell slightly after a strong three-day rally, Singapore edged down, and Shanghai remained closed for a holiday.
The global rally has also been supported by data suggesting a slowdown in the US labor market. This has led the Federal Reserve to cut borrowing costs and signal more cuts ahead. Positive sentiment outweighed concerns over the US government shutdown, which has temporarily closed some services and delayed key jobs data. Analysts said the shutdown is unlikely to prevent a second rate cut this month.
Despite some risks, such as potential disruptions from prolonged government shutdowns, the Tokyo rally on broadly positive day reflects strong investor confidence in tech stocks and the broader Asian market. Market watchers continue to monitor developments in both US policy and regional technology investments.
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